Useful Functions Exercise

8/4/2019 Useful Functions Exercise

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uarie. The workshop isf workshops entitled the

Macquarie

illustrate conceptsO BE USED FOR ANYponsibility is accepted bytively Macquarie) in respect

es not accept any obligation toet if the spreadsheet is inaccurate.
mailto:[email protected]:[email protected]


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Overview

This workbook illustrates some useful spreadsheet functions and features.Each worksheet contains a set of exercises that use the functionsand features. You can complete the worksheet exercises by putting formulaeinto the cells that have a yellow background. When your answer iscorrect the red tags on the left of the worksheets will turn green.

Name of worksheet Purpose / examples covered.Aggregation Various functions that consolidate / summarise /

The following spreadsheet functions / features arSUMIF, SUMPRODUCT, COUNTIF, DAVERAG

Referencing Functions that allow flexible addressing / referen

with spreadsheets. The following spreadsheet fufeatures are covered:VLOOKUP, OFFSET, CHOOSE, MATCH.

Offset Some exercises that show how the OFFSET funused.

Scenario An exercise that shows how a user can select ascenario for analysis.

DataTables Illustrations of how the spreadsheet DataTable ube used. One and two dimensional data tables a

Arrays Shows how spreadsheet arrays work and gives eof their use.

ConditionalFormat Shows how conditional formatting can be used tohighlight areas of interest. Shows applications oand array functions.


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aggregate data.e covered:, DCOUNT.

ing of areas

nctions /

tion can be

articular

ility canre used.

xamples

dynamicallythe COUNTIF


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1 Find the amount of sales made in January.Use the SUMIF function.

D

2 Find the total amount of sales not made byDavies. Use the SUMIF function.

D

3 Find the total value of sales where the sale amountfor the rep in the month exceeded 500. Use the SUMIFfunction.

D

4 Find the number of times a salesperson made sales of more thanUse the COUNTIF function.

D5 A portfolio consists of a number of unit holdings. The table belo

number of units held and their respective prices. Find the weightunit price. Use the SUMPRODUCT function.Unit price Number units

1.03 100,000 1.15 56,000 0.89 3,290,000 0.99 890,000 1.13 120,000 0.85 240,000

1 2,350,000

G Weighted average unit price 6 The following table shows information about a portfolio of propert

Location Floors Age Yield Rent Perth 18 20 14% $ 105,000Sydney 12 11 13% 96,000Melbourne 13 14 9% 105,000


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Sydney 15 10 11% 220,000Auckland 14 15 10% 75,000Sydney 9 8 8% 76,800Auckland 8 9 6% 45,000

Find the average rent on buildings in Sydney that have more thaand buildings in Auckland that have more than 10 floors. Use thLocation Floors

Sydney >12 Auckland >10

F Average rent:

7 Find the number of properties that have yields between 10 and 1or which are more than ten years old. Use the DCOUNT function

F Number properties:


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SalesRep Month Amount Able Jan 300Bennet Jan 200

Davies Jan 400Able Feb 250Bennet Feb 600Davies Feb 750Smith Feb 230Able Mar 120Bennet Mar 90Davies Apr 230Able Apr 400Smith May 120

550.

shows thed average

ies.


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12 floorsDAVERAGE function.

% (inclusive).


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1 Put formulae into the cells $F$7:$F$10 to calculate theappropriate tax to pay. An error message should appear if any ofthe group types in $E$7:$E$10 are not A, B, C or D.

Income Group type Tax to pay Group type Tax rate F $1,000 A A 24%F $2,000 B B 36%F $3,000 D C 38%F $4,000 B D 44%

2 Treat $E$19 as a column offset into the source data area above.If the offset is 1 then 12 should be returned, if 2 then 23, if 3 then49 and if 4 then 78.

Source data12 23 49 78

Column offset: 1

E Offset value:

E Alternatively:3 Cell $E$32 contains the name of a month. Put a Month

formula into cell $E$34 that gives the position of the Janspecified month in the table to the right. For example, Feb

if the month is "Feb", then the position should be Marshown as 2. If the month isn't found then an error Aprmessage should be shown. May

JunMonth Mar Jul

AugE Position Sep

OctNovDec


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1 Find the depreciation (FIFO - straight-line) using the "Use$J$11. If the useful life is three years, for example, then teach year should be the sum of the capex's over that yeadivided by three. If the useful life is four years then the dshould be the sum of the capex's over that year and the pdivided by four.By using the OFFSET function you can make your solutioperiod.

Useful Life - PP&E (yrs) 2STATEMENT OF CASH FLOW$m FY01A FY02ACapex 10.20 11.30

STATEMENT OF FINANCIAL POSITION$m FY01A FY02ANon-current assets Property, plant & equipment - at cost 10.20 21.50Less: Accumulated Depreciation 2.55 5.38Property, plant and equipment 7.65 16.13

STATEMENT OF FINANCIAL PERFORMANCE$m FY01A FY02A

N O Depreciation Expense (2.55) (5.38)

2 Use the OFFSET function to allow the graph below to shstatements above.FY01A FY02A

J K L M N O 7Less: Accumulated Depreciation 0 0

0.4

0.6

0.8

1

1.2

( $ m

)

L


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0

0.2

FY01A FY02A FY03A FY0


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ful life" parameter inhe depreciation inr and the preceding twopreciation in each yearreceding three years

n work for any depreciation

FY03A FY04A FY05E FY06E13.10 15.03 14.70 15.40

FY03A FY04A FY05E FY06E

34.60 49.63 64.33 79.738.65 12.41 0.00 0.00

25.95 37.22 64.33 79.73

FY03A FY04A FY05E FY06E(8.65) (12.41)

w any single row from the

FY03A FY04A FY05E FY06E

0 0 0 0

ess: Accumulated Depreciation


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4A FY05E FY06E


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1 Put formulae in the yellow cells so the user can choosecell $F$12 should determine which numbers appear in tfunction to do this.

1 = Base casePhase 1 Phase 2Rental growth rate (%) 3.0% 4.0%Conversions (%) 45% 55%Occupancy factor (%) 60% 75%

Choose a scenario: 2

Chosen scenarioF GF G

F G Rental growth rate (%)F G Conversions (%)F G Occupancy factor (%)


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ne of three scenarios. The scenario chosen ine "Chosen scenario" section. Use the CHOOSE

Scenarios

2 = Best case 3= Worst casePhase 1 Phase 2 Phase 1 Phase 24.5% 5.5% 2.5% 3.5%50% 60% 40% 50%70% 85% 45% 55%


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A firm has debt of $3.2m, equity is $12.0m. The cost of equitand the cost of debt is 7.0%. The next cash flow to the firmFree cash flows to the firm are expected to grow at 3.0%.

Equity ($m) 12

Cost of equity 11%Debt ($m) 3.2Cost of debt 7%Growth rate 3%Next cash flow ($m) 1.25

From the figures above the weighted average cost of captialperpetuity of the firm's free cash flows can be calculated. Th

wacc 10.16%Value ($m) 17.46

1 Use a one-dimensional data table to tabulate the wacc and tfunction of the cost of equity.

Cost of equity wacc Value ($m)I JI J 9.0%I J 9.5%I J 10.0%I J 10.5%I J 11.0%I J 11.5%I J 12.0%I J 12.5%I J 13.0%I J 13.5%I J 14.0%

2 Use a two-dimensional data table to show the value of cashequity and growth rate.

I 1.00% 2.00%J K L M N 9.0%J K L M N 10.0%J K L M N Cost of equity 11.0%


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J K L M N 12.0%J K L M N 13.0%


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y is 11.0%ill be $1.25m.

(wacc) and the value toey are as shown below.

e value of cash flows as a

lows as a function of cost of

Value ($m)Growth rate

3.00% 4.00% 5.00%


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1 Put formulae into the yellow cells below to calc

Share Number Share Valuecode shares price

M ABC 1,000 $3.41

M DEF 15,000 2.87M GHI 7,500 10.11

2 Do the same as before but use the array versio

Share Number Share Valuecode shares price

M ABC 1,000 $3.41M DEF 15,000 2.87M GHI 7,500 10.11

What is an advantage of the array version? W

3 There are four facilities available to draw againthe yellow cells to show how many facilities areto show an overall check. The check should sfacilities are overdrawn and should show "Errorare overdrawn.

Facility limits ($m)2006 2007 E

Facility 1 1.20 1.20Facility 2 3.40 3.40Facility 3 5.60 5.60Facility 4 3.70 3.70

Facility borrowing2006 2007 E

Facility 1 1.10 1.15Facility 2 3.00 3.50Facility 3 5.50 5.60

Facility 4 3.00 3.20L M N Facilities overdrawn:L M N Check:

4 Find the present values of the cash flows listedinterest rates have a term structure so you will


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the appropriate discount rate for each year.Also find the net present value.

2006 2007

5.34% 5.45%2006 2007

Cash flow -1.20 -3.70L M N O P Q R PV

L NPV

5 There are a number of cash flow series and weUse an array-based expression to find each Ncalculations.

2006 20075.34% 5.45%

NPV 2006 2007K -1.20 -3.70K -2.40 -7.40K -3.60 -11.10


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late the value of each shareholding.

n of the formula.

at is a disadvantage?

t. Put formulae intooverdrawn and alsoow "Ok" if no" if one or more

2008 E

1.203.405.603.70

s ($m)2008 E

1.303.005.50

3.80

below. Note thateed to use


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1 Use conditional formatting to highlight the sales in the table below thlower and upper limits.Upper threshold ($m) 60Lower threshold ($m) 50

Sales ($m)FY01A FY02A FY03A FY04A

A 22.0 49.3 4.0 63.6B 89.5 70.8 5.4 64.7C 33.3 55.8 5.6 45.6D 28.0 45.8 60.8 31.3E 4.1 7.5 47.7 52.7F 62.2 99.7 62.5 48.4

G 26.0 36.0 37.7 29.5H 83.8 88.9 65.7 2.8I 76.2 33.1 99.9 93.7J 51.0 55.6 49.4 74.3

Legend: Between

2 Summarise the data in the table above. The cells following should shsales above the upper threshold and the number of sales below the lUse the COUNTIF function for this.

NumberF Above upper thresholdF Below lower threshold

3 Summarise the data in the table above. The cells following should shsales between the thresholds. You can use an array formula of this f

NumberF Between upper and lower


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t are between the

FY05A FY06A11.6 63.791.1 96.297.8 83.231.9 72.630.7 26.049.4 61.7

43.1 47.335.9 32.649.0 14.433.1 35.3

hresholds

ow the number ofwer threshold.

ow the number ofrm: {=SUM(IF(....))}

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Useful Functions Exercise